Gurugram-based B2B marketplace OfBusiness raised $110 mn as part of Series D2 funding round through its parent entity OFB Tech from Falcon Edge Capital. With the current round, the company is close to the unicorn club with an $800 Mn valuation.
The round also saw participation from existing investors Matrix Partners India, Creation Investments, and Norwest Venture Partners. Including the latest funding round, the company has raised $170 Mn so far.
The six-year-old company was founded by Asish Mohapatra, former VC at Matrix Partners; Bhuvan Gupta, ex-vice president of engineering at Snapdeal; and Ruchi Kalra, former McKinsey partner, OfBusiness is a marketplace primarily, and also offers working capital financing for procurement of raw materials to small and medium enterprises (SMEs) in the manufacturing and infrastructure space. The company provides loans to such companies along with materials such as TMT bars, polymers, kraft paper, cement and building materials at competitive prices.
OfBusiness aims to use the funding to expand geographically and increase its supply chains. It also plans to use the funds for potential acquisitions and grow its tech offerings to the B2B ecosystem. In its statement, the company claims to have a gross merchandise value (GMV) run rate of $1.5 Bn with a profit before tax (PBT) run rate of $20 Mn. It also runs a cash flow-based financing business for buying raw materials through its NBFC platform Oxyzo Financial Services.
The company has been profitable for more than three years and is aiming to go public within the next two years, co-founder and CEO Asish Mohapatra told ET.
Meanwhile, Infra.Market which works in the same B2B segment entered the unicorn club in February this year. Interestingly, Infra.Market has also been profitable since its inception in 2016. In the financial year 2020, the company had noted a 5.5x jump in its revenue to INR 350 Cr. Besides this, Udaan is another unicorn in the B2B ecommerce space and raised $280 Mn in January this year.
Despite witnessing exponential growth, the Indian infrastructure sector remains largely unorganized. With new companies focusing on the B2B model while fusing technology and ideas into real estate, there has been considerable interest from investors.